Ex-Turkey long offers roll back further due to lower scrap and weak sales

Thursday, 15 September 2022 15:29:14 (GMT+3)   |   Istanbul
       

Turkish longs producers have cut their longs export prices amid the negative sentiment in the import scrap segment and due to the fact that the international buyers continue exerting pressure amid the negative market outlook. At the same time, Turkey-based mills are feeling the pressure from higher input and conversion costs while there is a good chance there might be sanctions for using ex-Russia semi-finished products, which also fairly limits producers’ freedom in actions. In the meantime, the freight rates in the region have somewhat decreased to acceptable levels, thus giving a breather to the suppliers.

On export, the business activity has been relatively slow this week and the prices decreased by $10-20/mt to $670-690/mt FOB. Higher offers are still there due to cost-related reasons, but they are hardly workable in today’s market. With the new EU quota period to open in October, there has been a fresh 5,000 mt sale to the eastern part of the region at $685/mt FOB for late September shipment. Generally, most mills are in the market to sell for October. Some sources reported that large inquiries are there from Far Eastern buyers, but selling there is currently challenging due to non-matching prices.

In the Turkish domestic market a few local traders have already restocked and are taking their time for the additional tonnage and monitoring the import scrap price trend. In addition, they are waiting for Turkish Central Bank’s interest rate decision due on Thursday, September 22. This week, according to sources, around 20,000-30,000 mt of rebar have been booked in the Izmir and Marmara regions at $640-670/mt ex-works. Some of the producers have turned out to be ready for discounts due to unfavorable currency situation and the downturn in the recent import scrap prices. The workable rebar price range is estimated at $640-660/mt ex-works. Some of the mills have already started their maintenance process and reduced production capacity, which is also related to the higher energy cost-related reasons.

In the wire rod segment, most Turkish mills have decreased prices by $20/mt on average to $690-710/mt FOB for October shipments. A few enquiries have been received from the EU and Africa and around 10,000 have been sold this week at around $700/mt FOB with no details disclosed to the market just yet.


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